AZ SB1113

Changes the threshold for terminating unused income tax credits from four consecutive reports to three consecutive reports with no claims or usage.

Director of Department of Revenue must issue public announcement on the department's website and notify the governor's office, legislative leaders, and joint legislative budget committee when a credit is terminated.

Requires inclusion of credit repeal in technical tax correction legislation, with a savings clause allowing continued use of credits carried forward from prior years for their remaining carryforward period.

Clarifies that unused credits carried forward from prior years are not considered "claimed or allowed" in the year they are used, preventing them from resetting the termination clock.

Does not apply to credits subject to Arizona Commerce Authority preapproval unless both no preapproval notice was received and the credit was not claimed in the three-year period.